In years gone by, stated income loans were often referred to as “liar loans” because people would look to purchase a home and would simply state what they earned, regardless if it were true or not. When it comes to stated income commercial loans, it is a different beast. How much the borrower takes for personal income is not nearly as important as the investment property or business. If someone is looking to purchase a site with no or poor financials, it doesn’t necessarily mean that the property or business is not desirable. Not all businesses do poorly for the same reason. The owners could be in poor health. Partners could be having difficulties and not working together to maximize prophets. People could be in the middle of a divorce. It could simply be a matter of a road widening and reduced traffic for a period of time. This is one of the reasons stated income loans are so desirable. You simply do not have to have all the scrutiny of tax returns, profit and loss statements among other things. Do you get the same attractive rate? NO. But you also probably are not paying market value for many of these properties also.
If you’ve been responsible about safeguarding your credit, you shouldn’t be punished while obtaining a loan on a commercial property!